HSBC profits rise as bank launches $2bn share buyback

HSBC announced the appointment of a new chairman in March as part of a management overhaul that will also see it choose a new chief executive to replace Stuart Gulliver, following a massive drop in 2016 profits.

Mark Tucker, currently group chief executive and president of insurance group AIA, will take over from Mr Flint in October.

Mr Gulliver has said he will step down in 2018.

Mr Gulliver and Mr Flint were grilled by MPs in 2015 and apologised for “unacceptable” failings at HSBC’s Swiss division following allegations the unit helped rich clients hide billions of dollars from the taxman.

HSBC was one of six major US and European banks that were fined a total of $4.2bn by global regulators in a November 2014 crackdown for attempted manipulation of the foreign exchange market.

It was also fined $1.92bn by US prosecutors in 2012 to settle allegations that it failed to enforce anti-money laundering rules exposing it to exploitation by drug cartels and terrorist organisations.